Resource Center

Advanced Search
Technical Papers
Working Papers
Research Memoranda
GTAP-L Mailing List
GTAP FAQs
CGE Books/Articles
Important References
Submit New Resource

GTAP Resources: Resource Display

GTAP Resource #673

"Do Rent Seeking and Corruption Impede Economic Growth? Evidence from an Application to Bulgaria"
by Gaitan, Beatriz, Ferdinand Pavel and Terry Roe


Abstract
The propose of this paper is to assess the social cost of "bad" governance and to compare these cots with welfare losses due to distortions of prices. We therefore present a general equilibrium model where producers of final goods finance a rent-seeking system by setting the price for intermediate products in an oligopsonist manner. This model is applied to the Bulgarian economy, in particular to the food chain where we find evidence of this type of market imperfection. From this application we find that as long as resources are allocated towards rent-seeking activities, there will be no significant welfare gains from free trade. Thus, we find "bad" governance to be a strong impediment to economic growth.


Resource Details (Export Citation) GTAP Keywords
Category: 2001 Conference Paper
Status: Published
By/In: Presented at the 4th Annual Conference on Global Economic Analysis, Purdue University, USA
Date: 2001
Version: n.a.
Created: (5/30/2001)
Updated: Pavel, F. (5/30/2001)
Visits: 2,648
No keywords have been specified.


Attachments
If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.


Public Access
  File format GTAP Resource 673   (956.6 KB)   Replicated: 0 time(s)


Restricted Access
No documents have been attached.


Special Instructions
No instruction supplied


Comments (0 posted)
You must log in before entering comments.

No comments have been posted.